Kisan Credit Card (KCC)
Agriculture Schemes
Kisan Credit Card (KCC) scheme was Introduced in 1998-99. This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of R.V.GUPTA committee
A Kisan Credit card has been specially designed to provide farmers of the country a financial support.
Its objective is to meet the comprehensive credit requirements of the agriculture sector and by 2019 for fisheries and animal husbandry by giving financial support to farmers
The KCC scheme is being implemented by the all Co-operative banks, Regional Rural Banks and Public Sector Banks throughout the country.
Kisan Credit Card (KCC) — Current Data
| Point | Current position |
|---|---|
| Introduced | August 1998 |
| Model scheme prepared by | NABARD |
| Based on | R. V. Gupta Committee recommendations |
| Coverage | Agriculture + animal husbandry/dairying + fisheries |
| KCC loan limit under MISS | Up to ₹5 lakh |
| Collateral-free agricultural loan limit | ₹2 lakh per borrower |
| Effective date of ₹2 lakh collateral-free limit | 1 January 2025 |
| Concessional short-term agricultural loan rate | 7% p.a. |
| Prompt repayment incentive (PRI) | 3% p.a. |
| Effective rate for prompt repayment | 4% p.a. |
| Current active KCCs | Over 7.72 crore |
| Outstanding KCC loans | About ₹10.2 lakh crore |
The ₹5-lakh KCC limit and ₹2-lakh collateral-free limit are the important updates. The Government’s March 2026 information confirms these figures.
⚠️ Major correction to your old notes
Your notes say:
Interest Subvention = 2%
Prompt repayment = 3%
Effective rate = 4%
The effective 4% figure remains, but the current structure is different. Under the current Modified Interest Subvention Scheme (MISS), the Government provides 1.5% interest subvention to banks, while the farmer gets a 3% prompt repayment incentive, making the effective rate 4% for eligible prompt repayers.
Also, don’t memorize the old ₹3 lakh KCC limit as the current overall KCC limit. The Government has enhanced the MISS loan limit to ₹5 lakh.
Priority Sector Lending — Important Update
Your notes say 8% for Small & Marginal Farmers (SMFs). That is outdated under the current PSL framework.
For the current PSL framework, the agriculture target remains 18%, while the sub-target for Small & Marginal Farmers is 10%, not 8%. The revised PSL directions took effect from 1 April 2025.
So remember:
Agriculture = 18%
SMF = 10%
Total PSL = 40% for applicable domestic commercial banks, subject to the applicable RBI framework.
🔥 Exam-ready current facts
- KCC → August 1998
- NABARD → Model KCC
- R.V. Gupta Committee → KCC
- KCC extended to fisheries & animal husbandry → 2019
- Current MISS KCC limit → ₹5 lakh
- Collateral-free agriculture loan → ₹2 lakh
- 7% → concessional short-term agricultural lending rate
- 3% → Prompt Repayment Incentive
- 4% → effective rate for prompt repayers
- MISS bank interest subvention → 1.5%
- Agriculture PSL target → 18%
- SMF PSL sub-target → 10%
| Interest Subvention Scheme | |
| Interest Rate on KCC | 9% |
| Relief due to Interest Subvention Scheme | -2% |
| Relief due to promptly repay the loans on or before the due date or the date fixed by the bank | -3% |
| Final Effective Interest Rate on KCC | 4% |
| More Government Scheme | Click |
